Universal Life Insurance

Universal policies are sold as investments that combine insurance protection with savings. Actually, a Universal Life Policy can be defined as a flexible premium deposit fund that is combined with monthly renewable term insurance.

Universal term insurance works in the following manner:

An initial specific premium is paid. Then expenses are deducted from the gross premium and the balance is credited to the policy’s initial cash value. Secondly , a monthly mortality charge is conducted from the cash value to pay for the pure insurance protection. And finally, the remaining cash value is then credited with interest at a specified rate.

The basic characteristics of universal life are as follows:

Whole Life Insurance

Whole life Insurance has level premiums and will provide protection until age 100. There are several types of whole life- Ordinary Life Insurance, Limited-Payment Life Insurance and Endowment Insurance.

Ordinary Life Insurance is a form of Whole Life. Lifetime protection is provided until age 100 and the premiums remain level. In the event the insured is still alive at age 100 the full face amount will be paid without death having to occur.

When do you need term life Insurance?

If others rely on you for some or all of their financial security, term life insurance can help protect their future.